🎥 Zoom-as-a-Service

Call her ZaaSy... Zoom has become a verb, a meme, and a lifestyle. Despite that powerful brand clout, Zoom's latest service involves un-branding itself. Zoom will license its video conferencing tech to other apps. We're calling it Zoom-as-a-service.

• ZaaS: Companies will be able to weave an unbranded version of Zoom into their products. Think: dating apps, telehealth providers, and social media.
• AaaS: Amazon is sneakily offering something similar with its own video conferencing tools. Those Slack video calls? They happen through Amazon (Bezos is everywhere).

A (pre) post-pandemic crisis... This past year, Zoom has been a coronaconomy star. In 2020, its sales quadrupled to a record $2.7B. In October, it notched a stunning $170B valuation as its stock soared. Since then, three vaccines have started rolling out — and Zoom shares have fallen ~40%. Now, Zoom's looking at other ways to grow.

• One product, many applications: Instead of launching new products, Zoom is expanding use cases for its existing product (basically, just video).
• Last year, Zoom announced OnZoom, which lets people charge for events they host (think: pilates class). With Zaas, Zoom is becoming more than just a standalone app — it'll be invisibly integrated into apps you use each day.

Forget SpaceX shuttles... The hottest transportation story on Wall Street yesterday was a railroad merger. Canadian Pacific Railway has agreed to buy Kansas City Southern in a $25B cash-and-stock deal. It's the biggest merger announcement of the year so far. If approved, it would create the first railroad network connecting the US, Mexico, and Canada.

• ~20K miles: The distance the new company would operate, generating ~$8.7B in sales per year. Start planning your Toronto-Vegas-Cabo trip (if you're a car part or grain product).
• Kansas City Southern shares jumped 11% to a record high yesterday, and have more than doubled in value over the past year.

It's fun to stay at the USMCA... USMCA = US-Mexico-Canada Agreement. Trump signed the major trade treaty into law last year to replace NAFTA. This railroad deal is an effort to capitalize on an anticipated post-pandemic increase in North American trade.

• "Build Back Better": President Biden has pledged to spend trillions on infrastructure (think: roads and bridges). That could benefit railway companies like Kansas City that are transporting gravel, metal, machinery, and other building materials cross-country.
• "Clean energy future:" Another focus of Biden's BBB plan. Rail is 4X more fuel efficient than trucking. One train can keep 300+ trucks off public roads and produce 75% less greenhouse gas emissions.

• Vax: AstraZeneca's Covid vaccine was shown to be safe and 79% effective in late-stage US trials. The company plans to request FDA authorization by mid-April.
• Regulate: President Biden nominated tech critic Lina Khan to the Federal Trade Commission. If confirmed, she'll vote on important Big Tech antitrust cases.
• Level: Fortnite-maker Epic Games is reportedly closing in on a large funding round, which will value it at $28B.
• BBB: Biden admin officials are reportedly crafting a huge infrastructure and economic package that could cost up to $3T.
• Um: Apple's HomePod Mini has a secret temperature and humidity sensor just waiting to be switched on.

• Earnings expected from Adobe and GameStop
• Treasury Secretary Yellen and Fed Chair Powell testify to the House Financial Services Committee on their pandemic response

Authors of this Snacks own shares of: Amazon and Apple

ID: 1574546